EnQuest : Half Year Results (Presentation)

EnQuest

2021 Half Year Results

02 September 2021

Page 2

Introduction

Amjad Bseisu

Chief Executive

02 September 2021

Page 3

Strong free cash flow driving debt reduction; Golden Eagle acquisition to add significant value

Deliver

De-lever

Grow

H1 production at 46,187 Boepd1; within guidance

Golden Eagle expected to replace production from CoP assets

LTIF of zero2 - Heather achieved two years LTI free in July

Strong free cash flow of c.$141 million

Net debt of c.$1,183 million, down by c.$97 million

Signed RBL facility to facilitate Golden Eagle acquisition and simplified capital structure Hedged c.11 MMbbls of 2021 production

Golden Eagle expected to add significant production, reserves and cash flow

Completed acquisition of equity interest in and operatorship of the Bressay Oil Field; provides low cost addition of 115 MMbbls (net) 2C resources

Completed acquisition of Bentley discovery in July, offering long-term potential development opportunities and other synergies

• Net working interes

2 LTIF = Lost Time Incident Frequency, measured as the number of incidents per million exposure hours worked (based on 12 hours for offshore and eight hours for onshore)

02 September 2021

Page 4

Lower production but strong capital discipline

Production

• Good Kraken performance, in line with guidance
• PM8/Seligi performing better than expected
• Magnus impacted by well performance
• Alma/Galia and the Dons CoP

Group unit opex c.$19/Boe

- Lower Group production

Cash expenditures reduced to c.$55 million

• Capital expenditures focused on Magnus, Kraken and PM8/Seligi
• Increased abandonment activities following CoP decisions in 2020

Net production1
(Boepd)
60,000
					66,055
40,000
								46,187
20,000
0
					H1 2020				H1 2021
Unit opex
($/Boe)
20
									19
10						14
0
					H1 2020				H1 2021
Cash expenditures
($m)
150
100
	108
50
					55
0
					H1 2020				H1 2021

• Net working interest

02 September 2021

Page 5

Guidance update

Production expected to be at the lower end of the full year guidance range

• Kraken expected to produce within original guidance range
• Production enhancement activities at Magnus, GKA and PM8/Seligi progressing
• Golden Eagle expected to add c.2,000 Boepd2 in 2021; brings full year production towards the middle of the range

Operating expenditures expected to be c.$300 million

• Lower lease charter credits reflecting higher uptime at Kraken
• Production enhancement and topside workscopes at Magnus
• Unfavourable GBP:USD foreign exchange and higher diesel prices

Cash expenditures expected to be broadly in line with original guidance of c.$120 million

- Excludes costs associated with the PM8/Seligi riser incident repair

• Net working interest

• Not included in guidance